Stamp duty was introduced in England in 1694 during the reign of William III and Mary II as a tax to raise money for the war against France.
I’m sure it had mixed reviews at the time and through time taxed newspapers, cheques, hats and insurance and since the 1950’s property.
The Guardian on the 4th May felt that using stamp duty as a stimulus package was a mistake and will cost the Treasury £2 billion.
Their main points:
- The £2 billion should have been collected and used to pay back the deficit. And an injection of stimulus just drives house prices upwards.
- I believe it has supported social mobility seen through increased transactions, will encourage employment and fuel personal aspirations.
- That people need to move, family’s grow, job opportunities arise, working remotely is a reality and more space at home is now a priority.
- As for our industry, like many it needed help during the pandemic, meaning we as an industry did not rely heavily on furlough money.
Nothing is perfect, this cut though has proved successful. All for £2 Billion! Mixed reviews, just 300+ years later.